ENHOUSING CREDIT & MORTGAGE PERFORMANCE · OCTOBER 19, 2026
FHFA Reports More Forbearance as Serious Delinquency Holds Steady
FHFA reported 16,195 Enterprise foreclosure-prevention actions in July, an increase in forbearance plans, a steady 0.59% serious-delinquency rate, and lower refinance volume as mortgage rates rose.
What FHFA released on October 15
Source publication date: October 15, 2026. The Federal Housing Finance Agency reported that Fannie Mae and Freddie Mac completed 16,195 foreclosure-prevention actions in July, including 7,503 permanent loan modifications. Initiated forbearance plans rose from 8,657 in June to 9,798, while loans in forbearance increased to 38,002, equal to about 0.12% of total loans serviced and 7.00% of delinquent loans.
- 01Serious delinquency held at 0.59%
- 02Forbearance plans increased
- 03Refinance volume declined
Headline delinquency was stable, but workout activity remained active
The 30-to-59-day delinquency rate declined to 0.96%, and the serious-delinquency rate held at 0.59%. Foreclosure starts fell 22.4% to 7,569, while third-party and foreclosure sales were flat at 1,403. Among July modifications, 35.7% involved term extension only and 62.3% included principal forbearance. Those Enterprise residential measures do not describe commercial mortgages, private-label loans, or a particular collateral pool.
Higher rates continued to shape refinance activity
FHFA reported lower total refinance volume in July as the average 30-year fixed residential mortgage rate rose to 6.54% from 6.49% in June. Cash-out transactions represented 58.1% of refinance activity. Residential mortgage averages are not quotes for commercial real estate or business debt, whose pricing and proceeds may depend on benchmarks, spreads, debt yield, DSCR, leverage, property performance, sponsor strength, structure, and lender appetite.
Practical borrower and investor takeaway
Separate current, early-stage delinquent, seriously delinquent, modified, forborne, and foreclosure exposures in any housing-linked portfolio. Validate payment history, servicer advances, taxes, insurance, occupancy, collateral value, modification terms, legal timelines, and borrower-assistance obligations. For refinancing, use current transaction-specific quotes and stress lower proceeds, higher debt service, slower workouts, and longer holding periods. Treat FHFA totals as context, not proof of collateral quality or investment return.
Housing-linked borrowers and investors should distinguish national Enterprise performance from their own collateral and test delinquency, servicing, modification, rate, liquidity, and exit assumptions at the loan and market level.
Discuss a financing need →This independent summary is based on the cited source and is provided for general educational purposes only. Terms and program requirements may change.